Cheques can now be paid into savings accounts – CBN

The Central Bank of Nigeria on Tuesday released four new guidelines
for the banking industry, top of which was an approval for bank
customers to make cheque deposits into their savings accounts.

Prior to this development, bank customers could only make cheque
deposits into their current accounts.

The new guidelines were contained in a circular posted on the CBN
website and signed by the Director, Banking and Payment System, Mr.
Dipo Fatokun.

The circular, which was directed to banks and other financial
institutions, was dated July 28, 2016.

Aside from this approval, the CBN also ordered banks and other
financial institutions to remove fixed interest rate on credit cards.

The central bank directed the banks to henceforth begin to embed
customers' Bank Verification Numbers on their payment cards.

It also ordered the banks to discontinue actual address verification
as a condition for account opening for customers with the BVN.

In approving cheque deposits into savings accounts, the apex bank
limited the daily deposit to only N2m per customer in a day.

The CBN said the new guidelines were meant to strengthen the payment
system and the banking sector.

The circular, with reference number BPS/DIR/GEN?CIR/03/005, read, "The
Central Bank of Nigeria, in furtherance of its efforts at
strengthening the Nigerian payment system, hereby issues the following
directives: the removal of fixed interest on credit cards; and
discontinuation of actual address verification in account openings for
customers with the Bank Verification Number.

"Banks should begin to embed the BVN on all payment cards issued
henceforth to facilitate off-line BVN verification and biometric-based
customer authentication in such payment devices as the Automated
Teller Machines, Point of Sale Terminal, kiosks etc.

"Savings account customers with the BVN should be allowed to deposit
cheques not more than N2m in value into their savings account per,
customer per day. Please, be guided and ensure strict compliance with
the content of this circular."

In another development, the CBN advised Nigerians at home and in the
Diaspora to beware of the unwholesome activities of some unlicensed
International Money Transfer Operators in the country.

It said in a statement by its Acting Director, Corporate
Communications, Isaac Okoroafor, that the warning had become necessary
because of the activities of some unregistered IMTOs, whose modes of
operation were detrimental to the Nigerian economy.

Okoroafor stated, "All financial service providers in Nigeria, just as
in other jurisdictions, are required to be duly licensed in order to
protect both customers and the financial system as well as to ensure
the credibility of financial transactions.

"For the avoidance of doubt, all licensed International Money Transfer
Operators, in line with the CBN circular on the sale of foreign
currency proceeds of July 22, 2016, are required to remit foreign
currencies to their respective agent banks in Nigeria for disbursement
in naira to the beneficiaries, while the foreign currency proceeds are
to be sold to Bureaux De Change operators for onward retail to end
users.

"The Central Bank of Nigeria will, therefore, not condone any attempt
aimed at undermining the country's foreign exchange regime.

"Accordingly, members of the public are advised to beware of the
activities of such unregistered IMTOs for the greater economic good of
Nigeria."

--PUNCH.